H.I.G. Capital has made an undisclosed debt investment to back York Ventures in its acquisition of a freehold interest in UK-based city center building Yorkshire House. The capital infusion will be used to redevelop the building into a Malmaison Hotel.
LONDON–(BUSINESS WIRE)–H.I.G. Capital, LLC (“H.I.G.”), a leading global private equity and alternative asset investment firm with more than €18 billion of equity capital under management, announced today that one of its affiliates has completed a structured debt investment to assist York Ventures in acquiring the freehold interest in Yorkshire House. The iconic city centre building will be transformed into a 124 bedroom Malmaison Hotel with 49 serviced suites. Terms were not disclosed.
This transaction represents H.I.G.’s 32nd real estate investment in Europe since the start of 2013. H.I.G. continues to add to its sizable portfolio of real estate assets in Europe, consisting of both equity as well as debt investments, with a particular focus on its target market of value-added small/midcap opportunities.
Riccardo Dallolio, Managing Director at H.I.G. in London commented: “This transaction further demonstrates our ability to invest across the capital structure in different asset classes and jurisdictions. We continue to see interesting small/midcap value-add opportunities in the U.K. market.”
Graham Emmett, Managing Director at H.I.G. in London added: “York is a regional U.K. city with a wealthy demographic, and strong business and international tourism links. This structured debt investment is an opportunity for us to support a local investor in regenerating a major city gateway, with a debt instrument which is underpinned by strong real estate fundamentals. The structured finance market represents a key strategy for H.I.G. and we continue to actively look at such opportunities in the U.K. and across Europe.”
About H.I.G. Capital
H.I.G. is a leading global alternative assets investment firm with more than €18 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of €22 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.